Pros and Cons of Buying a

House in Foreclosure

When a homeowner can’t make mortgage-loan payments and the lender
repossesses the property, the home becomes foreclosed and is typically
available for sale soon after. Many benefits can come with buying a foreclosed property, but if
you’re not knowledgeable about the process, there are pitfalls you need
to consider. Before you purchase a foreclosed home, review the pros and
cons to avoid ugly surprises.Before
you buy a foreclosed property, consider hiring a real-estate agent.
Having someone who’s looking out for your best interests might save you a
big headache.Don’t
confuse a foreclosed home with a real estate owned (REO) property. An
REO describes a class of property that a lender — typically a bank,
government agency or government loan insurer — owns after an
unsuccessful sale at a foreclosure auction.

First steps

• Determine what foreclosure properties are available in the areas
you want to live in by reviewing listings in your local newspaper or on
bank websites, accessing public records, or conducting an online search.• Check out the properties you’re considering in person so you can see their condition and neighborhood.• Verify that the house is
still in foreclosure. Contact the trustee who filed the paperwork to
initiate the foreclosure or a local foreclosure specialist for this
information.• Order a title search to see if there are any liens on the property. If there are, it could raise the price.

The Pros

Aspects of buying a bank-owned property are similar to buying from a
homeowner, but there are opportunities to negotiate a better deal on a
foreclosed property than you might otherwise get. Pros of buying a
foreclosed home include:

• You can use traditional financing like VA and FHA loans.• A home in the pre-foreclosure stage could lead to a short sale.• If you have the required funds available to pay
the outstanding balance on a foreclosed property’s mortgage to the
lender, you’ll likely reduce competition.• The bank will be motivated to sell the property, which means you
might be able to negotiate price, down payment, closing costs and escrow
length.• The home’s title will be clear, so you won’t be
taking on any liens, mortgages or back-tax responsibility from the
previous owner.• If repairs are necessary, the owner might take care of them.

The Cons

Although buying a foreclosed home might seem like a great deal, it can have drawbacks. Cons of buying a foreclosed home include:

• The occupant might still be in the house and will need to move out. He might be upset about losing the property and damage it.• If you purchase a house at a foreclosure auction, you buy it as is.• When a foreclosed property is auctioned off, you have to pay for it in full when you buy it.If you decide to purchase a foreclosed home, it might end up costing
you more in repairs than you planned on, which could be a bad financial
move. You might get a foreclosed home at a great price, however, and
speed your path to home-ownership.

If you’re considering buying a foreclosed home, enlist the help of a
qualified real-estate agent atPIERVIEW PROPERTIES Real Estate. That way, you can get their expert insights and opinion on
whether you’re getting a good buy.

9 Reasons To Visit A Home At Night Before Buying

Everyone knows someone who knows someone who moved into what seemed
like a perfectly great house on a perfectly nice street only to have a
complete nightmare unfold. But the truth is that your neighbor doesn't
have to be practicing Santeria on the front lawn for you to hate where
you live. So many things can turn what seems like your dream home into a
disaster. You may not be able to avoid every one of them, but doing
your due diligence can help.

Visit the homes you are considering at
night. You may get a completely different perspective on the
neighborhood once the streetlights go out - one that could change how
you feel about living there. Need some concrete reasons to visit at
night? How about:

1. To find out if your neighbors are weirdIf you toured the house during a weekday or even on a weekend, you
may not have gotten a true feel for who your neighbors could be. Come at
night, and you might see the guy next door walking his pet iguana in
the nude (the guy, not the iguana), or see the shady couple from around
the corner make their nightly pilgrimage to the elementary school to
ride the swings in a very curiously happy state.

2. To figure out if it's not active enoughDo you even have neighbors? You may not be too sure if they never
emerge from their house. If you're looking for a social experience in
your new neighborhood and the one your potential new house is in looks
like a ghost town after 5, this might give you second thoughts.3. To see if it's too activeThere can be too much of a good thing. If you swing by and see that
everyone is out mixing, it may make you look further into how often this
occurs. Does living there mean you'll never have time to play a board
game with the family or sit and watch your reality shows, or even
prepare your own dinner or take a bath? That could be a deal breaker.4. To gauge the noise levelNoise ordinances aren't something home-buyers want to have to
familiarize themselves with, but, for some, that's the reality of life
in a loud neighborhood. You may not know that the dog across the street
barks for 20 minutes every time the sun goes down - and then every time
someone has the nerve to walk by the house - or that several teenagers
on the street have formed a garage band and their practice schedule is
not compatible with your children's sleeping schedules until you're
spent some time there at night.5. To figure out the commuteDrive from work to your potential new house and make sure the commute
is doable. Even if it's around the same distance to work as your
current home, traffic patterns could make the drive unbearable.6. To make sure there are enough kidsEnvisioning a neighborhood where the kids all play together on the
street and ride their bikes and families are out walking with their dogs
and strollers (just not every minute of every day!)? Spend some time in
the neighborhood before and after dinner. If you don't see much
activity in the time before the sun goes down, there may not be much to
see at all.

7. To make sure the mixed-use neighborhood isn't a little too mixedThe idea of being within walking distance to shops, cafes, and
restaurants sounds great to many people. But have you thought about how
the noise and traffic that's created in areas like this might affect
your peace of mind at night?8. To ensure it's safeA neighborhood can look fine during the day and transform to
something a little iffy when the lights go out. Make sure you check out
the park down the street to make sure it isn't a drug hang and that area
businesses don't attract a questionable crowd in the evenings.9. Because there could be a serial killer living next doorAre you going to find out in one night of sitting outside in your car
or strolling down the street? No, but you may observe some odd behavior
that gives you pause. Maybe it's just a gut feeling you get spending
time in the neighborhood at night. If you're trying to decide between a
few homes, this may provide the tipping point you need to make the right
choice.

Choosing a Real Estate Agent could mean financial disaster if you choose the
wrong one. The goal in selling your home is - “Make Money” - Not lose it. But how do you know if you’ve picked the right agent? With thousands of real
estate brokerage firms in the U.S. you will have many agents and websites to choose from. Check out these recommendations for vetting potential real estate agents,
and you’ll find the selling process far smoother.After All This IS a Job Interview: Signing up with a real estate
agent is actually hiring an individual to perform a service, so treat it like
any job interview – where you arethe employer. David Albert Broker-Owner of PIERVIEW PROPERTIES Real Estate always says - Ask questions, interview
more than one candidate and make a final decision when you are comfortable with
the individual, after you have done your Homework! As many as 2 out of 3 buyers and sellers select the first agent they meet,
which can easily end in disaster if rushed. Most of the time the seller wants to get started as soon as possible, and
may make rash decisions, that may turn out to be a poor decision. Keep in mind
that this individual will be working with you for anywhere from a month to much
longer.Communication is Key: The real estate agent needs to understand your needs as
a client, which is a very important part of selling your home, or possibly
finding you a new one. Does the agent listen? Does the agent follow up with your questions,
requests and needs? What is your initial gut feeling? Ask Around Town:You, the
seller should also check for references. Ask the agents you are interviewing for
the information of previous clients, and take the time to call around to other
professionals in the local market to get a feel for their reputation. The ability of an agent working with others in the business is essential to
the success of the selling your home. If your agent is not friendly with other
area agents, others may not want to deal with him/her and show your home to
prospective buyers.How will the Agent MarketYour Home:In your initial meeting with a potential agent, you
should expect him/her to show you everything the agent will do in the selling of
your home. Always ask for a step by step marketing plan; not just "Will Do Our best".Have the agent show you how he/she marketed other properties in your IMMEDIATE AREA! Most of the marketing will take place online, but there are other ways as in
direct mail, flyers and magazines. Social media is another way of marketing your
home.Listing Price-Very Important:This is by far very crucial in the entire process. If you
list to high you will lose potential buyers. To low and you may end up
actually losing money. Don’t let dollar signs cloud your judgment. Look carefully at Closed Sales in "Your Area", within the past 4-6 months.Some, not all, agents will list your home higher just to get
the listing. This is where you must do your homework. Ask the agent what was
the list to sell percentage on his/her last three to five homes. You will also want to know what percentage your agent is giving the other side. If the percentage is low - this could deter some
agents not showing your home. Hiring an agent who agrees to the lowest commission rate isn’t necessarily a
smart way to go either. Trust Your Gut Feeling:Keep
in mind that when you list your home, your real estate agent will be privy
to your personal and financial information. Make sure that you feel good about
the agent and that he/she has Your best interests in mind.License Verify - B.R.E. in California<click- ALWAYS go online - Or call the Real Estate Board in your local
area, and make sure the agent is currently licensed prior to signing any
documents. With most real estate boards, you can check and see if he/she
has had any issues. You can also call the agents Broker regarding the agent.As this will more than likely be the largest
investment of your life....DO YOUR
HOMEWORK!

"for-sale-by-owners" Fail

Homeowners trying to sell their homes on their own - FSBOs - are driven by several reasons.
Although most of them want to save money on real estate commissions, a few others take the FSBO route
because they feel they don’t need a professional to sell their home. After all - it can't be that difficult -Right?Data from a National Association of Realtors survey shows that less than 10 percent of FSBOs actually sell.There are a lot of reasons why FSBO's fail and do not sell. Some of the top are:1. Many people to negotiate withThose deciding to take the FSBO route are not aware of how just how many people they will have to work and negotiate with, as in:

The buyer, seeking the best possible deal.

The buyer’s agent, who represents the buyer’s best interest.

Home inspection companies, working for the buyer, which are likely to find some problem or the other with the house.

Your bank, if it's a short sale.

The appraiser, if the home’s value needs to be assessed.

Without the help of experienced real estate agents, dealing with so
many different parties alone is often a tough task for homeowners.2. Most FSBOs do NOT know how to Prepare the Home For SalePre-listing tasks that FSBO's Must do before they list their home for sale - such as:

De-cluttering - All Rooms - To Include the Kitchen and Garage

Painting the rooms with a fresh coat of paint in a neutral color.

Getting necessary repairs done.

Having the home floors and carpets cleaned by professionals.

Ensuring curb appeal of the home - Front and Back Yard areas.

Replacing outdated light fixtures.

Because FSBOs only have one chance to impress
potential buyers, neglecting these home sale preparation tips, will often
reduce the FSBO's chances of selling the house.3. FSBOs do NOT know how to screen potential buyersFSBOs often have no idea about the difference between
pre-qualification and pre-approval, and they don’t know that buyers should
ideally be pre-approved or at least pre-qualified.Without doing one of the above the seller is wasting their time and money.4. FSBOs fail to solve Buyer’s questionsHandling questions from buyers on their listings and coordinating
showings for their homes are very important for making a sale.Unfortunately
many homeowners aren’t either able to handle such inquiries on their
homes or don’t have the time for them.More important is organizing time for showings that might become an issue. In this day and age potential buyers and their agents want quick
responses to inquiries, and don’t think twice about moving on to
the next potential property if they can't get the correct response.5. Owners don’t understand the concept of ‘Critical Time’According to this concept, homeowners get the most money for their
homes in the first 2 weeks of listing the property on the market. The
longer FSBO homes stay on the market, the less money people will be
willing to offer for them.If a seller tries FSBO before hiring an agent, the seller loses the
“golden time” window. This will eliminate buyers who have already viewed
the home and might have made a reasonable offer — but have already
moved on. The home will become stale on the market.6. Owners Fail to understand the contract proceduresThe contract to buy a home
involves much more than just the price offered by the buyer. Real
estate contracts have many timelines and clauses and involve several
common contract contingencies, such as inspections and mortgages.Most FSBOs don’t have a firm understanding of such contracts and
might not know what they are agreeing to, or how to negotiate particular
parts of the contract. 7. FSBOs will Not know how to handle the Home Inspection FindingsHome inspections almost always find some issues with houses even when
they are relatively newer structures. In such cases, the buyer will request the problems be fixed or corrected before moving forward with the
transaction.Many FSBO's believe that there is nothing wrong with their
home, so why spend the money? As a result, the potential buyer has an inspection and finds problems and the offer falls through.8. FSBOs incorrectly price their homesFSBOs often price their homes incorrectly due to lack of experience.
They set the price too high, which potentially hinders the chances of closing the
deal.9. FSBO homes lack exposureHomes for sale by owners are often listed on a few websites, but
there are many that don’t allow FSBOs to list their property. Thus,
FSBOs are unable to give their homes adequate exposure in the market.However, when sellers hire a real estate agent, the professional can
give a property comprehensive online exposure as well as exposure in the
local real estate segment of the newspaper. The agent even has tools to
extend the exposure further, which FSBOs don’t have.10. FSBOs fail in the closing processEven after an offer is accepted, many things still need to be done prior to the closing. For instance:

As a seller, you have a lot more control in pleasing buyers
than you think. If you start the selling process by learning what
buyers really want, you can prepare your home to come as close to their
dreams as possible.
Here are the five biggest turn-ons for home-buyers and what you can do to please buyers.Curb AppealYou only get one chance to make a first impression. Your home
should sell to the buyer from the curb. That's how important curb appeal
is. Your buyer should be so impressed, so charmed, so delighted that
they want to leap out of the car and run inside.How do you create curb appeal? Show attention to detail. Your home has to be prettier, cleaner and in better condition than its neighbors.
Start with sweeping the drive, walkway, and porch or entry of
dirt and debris. Get rid of leggy bushes, wilted flowers and broken tree
limbs. Plant fresh flowers in the front garden or in containers at the
entry.
Power-wash the exterior and hand-wash the windows. Touch up paint
around the windows, if needed. Paint the front door a fresh, modern
color. Replace the door hardwareand porch sconces.SpaceThe number one reason why people buy homes is to have more room.
Whether they're moving from an apartment or moving up from the home they
have, they want to have plenty of space to do the things they enjoy.If you have a large home, you're golden, but that doesn't mean
you've got it made. You can ruin a buyer's first impression with too
much clutter, so make sure to keep your home picked up so your buyer can
see your home's features clearly and easily.What if you don't have a lot of space? Plan to do some storing
and staging. Rent a storage unit and put away all out of season clothes,
toys, and home decorations and accessories. Clean off all tables and counter-tops so you have only the minimum of things your need to operate
your home. Empty closets of anything that is "stored" and move it to the
storage unit. The small expense you'll pay in storage fees you'll more
than make back from your buyer's offer.UpdatesThere's a reason why first time buyers and
singles tend to buy older homes - they're more affordable than buying
new. So unless your buyer is a building contractor, chances are they
want a home that's as updated as possible.You may not be interested in putting in a new kitchen in order to
sell your home, but you can do a few things to make buyers happy.
Replace the most dated features - counter-tops, cabinet pulls, or appliances.Bathrooms are so personal that they can easily turn buyers off.
Invest in new towels, bathmats and a shower curtain. Throw out slimy
soaps and limp ragged bath sponges. Replace with liquid shower and bath
products. You can take all the new stuff with you to the next home.Painting is expected by buyers, but don't repaint the same colors
that you chose 10 years ago. Pick an updated neutral like a warm grey
instead of beige. Be sure to choose a color that will complement the
architecture and flooring in your home.Keep in mind that home-buyers aren't expecting your home to be a
mansion, nor do they expect it to be new, but they do expect to see
pride of ownership. The more tweaks, updates and repairs that you
perform, the more confident your buyers will be that they're choosing
the right home

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